Development & Value Add
The United States as a whole has been short on supply of housing, especially rental housing, since the early 1980s and some would argue even before then. This imbalance has only been exacerbated by the pandemic. Migration from northern states to the Sunbelt States continues to exponentially increase demand for housing, meanwhile the supply of housing is struggling to keep up with pre-pandemic demand, and these constraints are only exacerbated by the supply chain disruption triggered by the pandemic. To put the current situation into perspective, consider this fact. It’s estimated that the US needs to build an average of 328,000 new apartments every year by 2030 to keep up with demand. We’ve only hit that mark three times since 1989. It is no longer a matter of if we need housing. It is a matter of where will housing provide the most utility. The real estate principle of “location, location, location” still rings true. Home affordability in the United States is not a reality for most Americans. When the current home affordability data is taken into context with the current migratory patterns of the US it becomes readily apparent that the Sunbelt states, such as Florida, Texas, Arizona, and the Carolinas, are ripe for build-to-rent and multifamily developments. The “missing middle” remains missing for the working-class. The working-class is wholly underserved and they comprise the majority of the population, which is one of the major driving forces behind the build-to-rent phenomenon the United States is currently experiencing. The macro trends indicate there are major tailwinds behind multifamily and build-to-rent housing in the Sunbelt region.
Considering the current market opportunity we have identified key states and submarkets within the Sunbelt region that will derive the highest utility from additional multifamily and build-to-rent supply. We are very focused on the state of Florida, especially submarkets between North Central FL and South FL that will benefit from economic growth and infrastructure improvements, such as FL's Brightline. Additionally, we are interested in Tennessee, North Carolina, South Carolina, Texas, Georgia, and Alabama.
Asset Type: Vacant Land or Total Redevelopment
Acreage: Urban: 1+ acres, Suburban: 15+ acres
Unit Count: Build-to-rent (“BTR”): 125+, Multifamily (“MF”): 200+
Geographies: Major MSAs, secondary, and tertiary markets in the Sunbelt Region
Asset Type: Market Rate Multifamily (all styles) & SFR Portfolios
Asset Class: B- or better
YOC: 1980's or newer
Unit Count: 50+ Units
Geographies: Major MSAs in the Sunbelt Region
Download Our Acquisition Criteria
Southern Waters Development, LLC (“SWD”) is a real estate development firm based in Fort Lauderdale, FL. SWD is led by a team with over 40 years of experience in real estate development, on-site, off-site construction management, and underwriting. Through their experiences the group has expertise in a wide range of asset types ranging from single family homes, industrial complexes, high-rises, missing middle asset types, and an industrial space craft launch complex. SWD provides owners representation services spanning the entire development life cycle, including entitlements, site analysis, development underwriting, project programming, site design, and procurement services. The diverse background of SWD’s principals enables the team to not only craft, but also properly execute, a unique development plan for each opportunity it pursues.
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